President Donald Trump returned to the White House in January 2025 with promises to address the housing affordability crisis in the U.S. He proposed deregulation, increased construction, and mass deportations of undocumented immigrants as means to expand housing supply and reduce costs.
A year prior, Trump announced his intention to expand homeownership to millions during his second term. Despite challenges posed by climbing home prices, high mortgage rates, and rising insurance premiums and property taxes, he aimed to help families purchase homes. In a video to a HUD event on September 8, 2025, Trump declared, “Together, we can put millions more American families in a home of their very own.”
Twelve months later, Trump’s second term shows mixed results. His administration has acted on parts of its housing agenda, including deregulation and immigration enforcement, as well as curbing institutional investors. However, these measures haven’t led to a significant increase in homebuilding.
Although inventory has grown slightly since Trump took office, the increase seems tied to weaker demand and slower sales rather than a boost in construction. Single-family housing starts are at their lowest in over three years.
Newsweek sought comments from the White House via email on Wednesday.
Housing Market Dynamics in 2025
When Trump took office, the housing market was dealing with a years-long underbuilding problem, contributing to a shortage estimated between 2.8 and 10 million units nationwide. Inventory was recovering post-pandemic, especially in states like Florida and Texas, but remained lower than pre-pandemic levels in many areas.
According to Redfin, active listings nationwide rose from 1,400,188 in January 2025 to 1,473,056 in December. However, new listings dropped from 383,208 to 376,281 over the same period.
The Census Bureau’s data showed little change by year’s end, with 1.5 million permits, 1.4 million housing starts, and 1.5 million completions. Single-family starts, while 4.1% higher than the previous month at a rate of 981,000, didn’t signal the construction boom Trump anticipated.
Has Housing Inventory Improved?
Since Trump’s return, home sales improvement has been modest. Inventory growth is possible through more property listings, but it can also rise if homes linger on the market due to high mortgage rates and prices, which deter many buyers.
The South sees inventory accumulation, whereas the Northeast and Midwest face shortages. As of July, nationwide homes for sale decreased by 0.65% from a year earlier, Redfin data suggests.
The Census Bureau reports worsening conditions for homebuyers, with July figures showing building permits at 1.5 million annually, while housing starts and completions were at 1.2 million. Single-family starts had their weakest reading since November 2022.
Challenges in New Construction
Builders face a paradox: a housing shortage alongside a growing stock of unsold homes, pushing them to cut prices and profits. The NAHB Chairman Bill Owens noted that high construction costs and affordability pressures stymie builders.
Rising material prices and interest rates complicate affordable home deliveries. A subdued builder confidence in the single-family market reflects economic uncertainties.
These factors hinder the administration’s ability to increase housing supply significantly. Although market conditions might allow existing homes to pop up in specific areas, new single-family home additions remain weak.
Future Expectations for Americans
While mortgage rates attract headlines, housing supply is crucial for long-term affordability. A variety of available homes can ease price pressures.
Homebuilders appreciate deregulatory measures yet grapple with financial and material costs limiting production. Weak buyer affordability discourages builders from initiating potentially unsellable projects.
The South and West may see inventory growth due to extended selling times, but demand issues alone won’t resolve the nation’s housing shortfall.
Nearly two years into Trump’s second term, existing inventory is slightly higher, with construction weak, and the affordability crisis remains a burden on potential buyers.
Contact Newsweek editors Ben Kelly and Dave Siminoff for more information.
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